Tag Archives: Real Estate

4 Things To Know About Homestead Exemptions

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4 Things To Know About Homestead ExemptionsHomeowners are well aware that peripheral costs swell over time and can put a strain on incomes. Utility bills increase, home insurance creeps up annually and taxes rise with the cost of schools and road repair.

That’s why many communities have enacted homestead exemptions that can help stabilize and even lower tax bills in some cases. Although these exemptions are not well publicized, knowing how they work and how to apply could save you a good deal of money.

Understanding The Homestead Exemption

A homestead exemption helps homeowners lower and/or fix the amount you pay in local taxes. Qualifying property owners can have a portion of the assessment excluded from taxation. That allows your tax bill to be calculated at a lower rate than non-exempt properties. In some communities, full-time residents can set their annual tax bill at time of purchase or when they are granted the exemption. This has been a national trend to help our valued elders on fixed incomes such as Social Security.

Protection From Civil Lawsuits

Many states have homestead exemptions in place that protect residents from displacement. For example, if a resident has a civil judgment leveled against them, a homeowner may claim the homestead exemptions as a reason their property cannot be seized to offset the debt. In most cases, the exemption is dependent upon the amount of equity a person has accumulated. In some places, homestead exemptions set aside properties from the probate process in the event of a death. Simply put, homestead exemptions can act as a financial safeguard.

Homestead Exemption Eligibility

The exemption is generally a benefit only for the mortgage holder of a primary residence. The majority of states limit this benefit to full, free-standing homes. Some allow condominium and mobile home owners to also claim the exemption. Non-traditional homes may be limited to certain groups, including, disabled people, our valued elders or those who served in the military. The total exemption may also vary depending upon the type of property and class of citizen. Again, states recognize the need for economic stability for people on fixed incomes.

How To Claim An Exemption

Homestead exemption applications vary from state to state. In Illinois, for example, a reported fixed deduction is automatically given to all homeowners who reside in the state full time. Other states require residents to reapply each year. The process may include providing proof of ownership, full-time residency and exemption group status. The reapplication process can be tedious and serves as a deterrent against fraud. Most states require one-time application approval with simple updates, generally during assessment years.

Although homestead exemptions are generally not well known, check your local and state website for information. If you are planning on buying a home, consider homestead exemptions as a long-term cost-saving benefit. 

Whether you have questions about your homestead exemption or want to learn about other ways to save on your mortgage, your trusted mortgage professional is ready and available to help.

4 Reasons Millennials Should Buy A Retirement Home First

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4 Reasons Millennials Should Buy A Retirement Home First There’s an idea running through marketing and business circles that anything that is popular, the opposite will likely be popular as well.

Consider that sugar and caffeinated beverages such as Coca-Cola have seemingly opposite products like Coke Zero. That product, in turn, is offset in the marketplace by high-sugar, high-caffeine energy drinks such as Monster and Red Bull.

In the housing industry, reverse living homes enjoy popularity. Basically, the bedrooms are downstairs while the kitchen, living room and other gathering spaces are upstairs. This concept of doing the opposite brings us to the idea about buying a first home.

The vast majority of potential buyers focus on starter homes as they build financial success. Some think about how that first home could be expanded to grow a family or sold when marriage and young ones come along. But Millennials enter the housing market may want to consider doing the opposite. What if you bought your last home first?

Consider these reasons for starting with your retirement home.

1: Lifestyle Suits Renting First

Millennials are flooding the job market and beginning to earn wages that prompt them to make major life purchases. But Millennial jobs tend to be different from the traditional ones of previous generations. Tech companies are trending in hip cities across the country and places with excellent weather. That means these first-time home buyers would either find themselves commuting through rush-hour traffic from the suburbs or paying urban real estate prices. Young Millennials may be better off renting and investing in property elsewhere.

2: Rent Out Your First Home

By taking your initial down payment and investing in a rental property, Millennials can make money or maintain a zero-expense real estate buy.

By purchasing your future retirement home in a vibrant community with a relaxed environment, it can pay for itself while strengthening your economic portfolio. The equity building in that first property will position you for a second home to live near work or build a family. That retirement rental may even put a few extra dollars in your pocket.  

3: Pursuing Career Opportunities

Whether you are fresh out off college, completed military service or rising in a company’s ranks, Millennials on the younger end of the spectrum can benefit from agility. Being able to seamlessly relocate to pursue emerging career opportunities or take a promotion in another city or state can help maximize your earning potential. Having a home is certainly nice, but you will be faced with a decision to sell and buy a new one or pass on an opportunity. Those are not necessarily the best considerations during prime earning years.

4: Downsizing Matters

The trend of valued elders is to downsize family homes as the enter their golden years. Ironically, many purchase the same type of starter homes all over again. The value of buying a retirement home first is that you will be able to cash out of any other property and apply that revenue to living expenses. In all likelihood, the initial real estate buy will be paid off. In the end, doing the opposite of common trends can prove to have improved long-term benefits.

If you are considering buying a property to rent and retire in later, contact your trusted mortgage professional to discuss your financing options.

Easy Decor Tricks That Make Any Home A Standout

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Easy Decor Tricks That Make Any Home A StandoutIf your home’s style currently wouldn’t win any awards, there’s no reason to put off a redo indefinitely. With a little ingenuity and a few hours of time, it’s possible to transform a “Plain Jane” into a trendsetter.

Here’s how:

Paint and Pattern

Almost any designer will tell you that color is the best way to alter the character of a room. It doesn’t have to be dramatic; even a subtle change of tone, texture or pattern on a single wall can be a distinctive focal point. If your home lacks architectural detail, you might consider adding wood paneling to one wall or to the ceiling. It can be rustic or refined, and it will add instant appeal and point the way to further decor ideas.

If you don’t want to make major changes, hang simple fabric panels on a decorative rod to frame a window; or add color throughout a room with accessories — textured accent pillows, cozy throws, ceramic lamp bases or attractive woven baskets that do double duty as storage containers.

Framed Photographs

Create a gallery wall by collecting favorite vacation shots, art photographs or family portraits. Depending on your personal taste and your decor style, frame them similarly or create a lively display by interspersing other shapes and objects into the grouping.

It’s best to have a plan, however, before you start pounding nails in the wall. Create your wall montage by first laying it out on the floor or on a large table. Then take measurements and transfer the whole arrangement to your wall.

Family Memorabilia

If you have a variety of items that have special meaning, it’s best to display them or use them regularly rather than to hide them away. Furniture, china, antique clocks or kitchen tools, books — even old clothing or uniforms — can be attractive and impressive when grouped together and displayed.

You don’t want to create a museum in your home, but if you curate a collection with care, it can be meaningful and beautiful at the same time. Small objects are best displayed in some kind of case or on enclosed bookshelves. Furniture, however, can still be functional even if put to a use far different than was originally intended.

Sports Ribbons and Trophies

The rule is: If it has meaning to you, it’s worth showing off. So signed game balls, jerseys and team photographs, as well as the swim team trophy from college or the first place debate ribbon you won in high school should have a place in your home as well as in your heart. They can be as important in your life as your college diploma or your wedding portrait, and you wouldn’t dream of hiding them in a closet, would you?

Your home should reflect your personality, not the style sense of a magazine editor.

Unless, of course, you’re actively trying to sell the house. Then it’s best to pack away some of the personal items and contact your trusted mortgage professional for pre-approval financing on your next home purchase. 

 

When It Makes Sense To Buy An Ugly Duckling

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When It Makes Sense To Buy An Ugly Duckling“Move-in ready” homes are desirable — there’s no doubt about it! But sometimes it makes better financial sense to opt for a house with dated decor and a less than trendy kitchen or master bath. You may not get your dream home immediately, but the opportunity to transform a property into your own swan can be rewarding. It can also be easy on the pocketbook.

When looking at Ugly Ducklings, however, look first to structural integrity and the condition of major home systems. including plumbing and septic, driveway and drainage. A home inspection is invaluable, even though no inspector can guarantee trouble-free systems. Inspections will alert you to potential problems: Needed roof repairs, leaking faucets, inoperable appliances, termite infestation or dry rot and the like.

All home components have a life span, and if you’re buying an older home, try to determine the age of its systems, including heating and air conditioning, and kitchen appliances.

Here are some ways to weigh the pros and cons:

Electrical Wiring

Assure that the electrical panel and service to the home are ample for your needs. If the panel is undersized or the home still has aluminum wiring, you’ll probably want to check on repair and replacement costs: In some older homes, it might be a deal killer. But it also might be an opportunity. You’ll have to weigh the options.

Roof

A roof that has been well-maintained, and that currently has no major deficiencies, is a bonus. If there are existing problems with shingles or gutters, it’s prudent to get an estimate for needed repairs from a qualified roofer. Use it as a bargaining chip in negotiations.

HVAC

Heating and Air Conditioning are major “quality of life” considerations. Whatever systems the house has installed should be in reasonable condition, and should heat and cool appropriately on demand. That doesn’t assure that you won’t have some costs sooner rather than later. But, depending on the age of the systems, you make get many more years of use.

Appliances

Older appliances may not have all the bells and whistles of stylish new models. But kitchen updates are expensive; the most costly items include cabinets and appliances. Buying a house with a vintage kitchen means that you can undertake a redo on your own terms, doing a little or a lot on your own timetable and with a specific budget in mind. 

Decor

Paint and simple fixes can change the whole look of a room, and put a new face on a whole house. A little elbow grease and a lot of imagination will easily compensate for the extra price of a remodeled home with all the newest materials. 

Landscaping

If you’re looking for bargains, look beyond negative curb appeal. Consider lot size and potential, and know that with a little cash and a lot of sweat equity, a nondescript yard can be transformed. Choose low-maintenance plants and reap double rewards.

Buying property in need of TLC, a Plain Jane, or the ugliest house on the block can be a wise decision if you have a little patience. But you might have to also invest some time and effort, along with some cash, to make it a thing of beauty. 

If you are in the market for a fixer-upper, be sure to contact your trusted mortgage professional for a pre-approval and to discuss financing options.

Outdoor Projects That Will Help You Sell Your Home

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Outdoor Projects That Will Help You Sell Your HomeFirst impressions matter when you’re selling your home. Curb appeal is what draws potential buyers to your home. It can make or break a home sale.

Attractive landscaping or an appealing entryway can determine whether or not buyers walk through your front door. If the outside of your house is poorly kept up, they probably won’t bother to see the inside.

You don’t have to have a large budget or tons of time to make your home look appealing from the outside. Here are some easy outdoor projects that will help you sell your home.

Get Rid Of Clutter

Getting rid of clutter and garbage in your yard is one of the easiest and cheapest things that you can do to make your home look great. Pretend that you are a buyer. Walk around your home and look for clutter. Pick up any plastic, paper, branches or other garbage that has made its way into your yard. Remove trash cans, skateboards, bikes and garden tools. If you have newspapers on your front porch, clear them away.

Clean Up The Landscaping

The last thing that you want is for buyers to pull up to your house and see an overgrown lawn that is littered with weeds. If you have listed your home on the market, it is important to keep the lawn looking neat and trimmed. Prune overgrown shrubs and trim hedges. Weed and water your flower gardens. Add a layer of mulch to all of your flower beds, as well. Sweep away any dead leaves or small branches. Make sure that you are mowing and weed-eating your lawn on a regular basis.

Repaint the Exterior

Repainting your exterior doesn’t cost a ton of money and it can enhance the value of your home quite a bit. It is especially important to repaint if your existing wood trim and front door have peeling paint. Adding a new coat of paint can be done over a weekend in most cases.

Update Lighting  

If you have old or broken exterior lighting, consider updating it. This is another job that does not take much time or money and can quickly give your home a facelift. Plus, exterior lighting is a great safety feature and something that most buyers appreciate.

Replace Broken Fixtures

Take a look at your door hardware, doorbell, house numbers, mailbox and other exterior fixtures. Do they look worn or old? Are they broken? If the answer to either of these questions is yes, then it is time to replace these things. Brushed nickel or bronze are both very nice exterior finishes. They work equally well in both contemporary and traditional homes.

Whether you are looking to reinvest in a new property or access your home equity for improvement projects, your trusted mortgage professional is available to answer all of your financing questions.

 

 

Tips For Selling Your Home In The Fall

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Tips For Selling Your Home In The FallFootball season has kicked off, temperatures are cooling and pumpkin spice everything is for sale in the stores. Yes, fall is here. While most people associate the spring and summer months as the ideal times of year to buy or sell, fall is still a great time to put your home on the market.

Families tend to want to get into their new homes prior to the holiday season, so buyers are typically still very active during the fall months. That said, there are plenty of ways that you can ready your home for a fast fall sale. Here’s a look at several tried and true tips to increase your curb appeal and move your property this autumn:

Keep The Yard Free Of Debris

Chances are your yard is full of leaves in the fall. But because temperatures are cooler and the days are shorter, fall is also a time of the year when your lawn looks its greenest and most lush. Make sure your leaves are cleaned up to show off the true potential of your yard (not to mention create the impression that your home is well maintained and cared for). Rake daily if you have to. If you don’t like raking, set the lawn mower to a low setting and bag the mulched leaves.

Autumn Curb Appeal

Buy some mums, a haystack and perhaps even some pumpkins or gourds to decorate your home with. These are perfect fall decor and can really help make your home stand out to potential buyers.

Hit The Lights

The days are shorter in the fall, which means that the natural light inside of your home may be waning during show times. That said, make sure all of the lights in the home are turned on prior to showings to create a well-lit, welcoming environment. 

Clean The Fireplace

With the nights getting cooler, fall is the perfect time of the year to start up the fireplace. If you have a gas fireplace, make sure that this is mentioned in the listing. Also make sure that the fireplace is clean and looks inviting in case the buyer wants to turn it on. If you have a natural fireplace, don’t fret. Even if you don’t use it, make sure that it’s cleaned out and looks ready to use.

Clean Your Gutters

In addition to making sure your yard is leaf-free, make sure that your gutters are also clean. You don’t want to give buyers the impression that your home isn’t well cared for. Plus, gutters overflowing with leaves can make the buyer think that the home requires excessive maintenance, which can be a turn off.

While preparing to sell your home, don’t forget to plan ahead for your new home. Contact your trusted mortgage professional to get your pre-approval and financing in order. 

Pros and Cons of Downsizing After Retirement

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Pros and Cons of Downsizing After RetirementWith Baby Boomers already rolling into retirement and Gen X looking forward to shrugging off the stress of the 40-hour work week, downsizing could be a strategic move.

For many Americans, homeownership remains their single largest investment and the monthly mortgage payment their highest bill. Lowering or nixing that cost altogether can free up a considerable amount of cash that could be used for retirement security or leisure activities. Keep in mind, your “golden years” should be just that, so enjoy them.

That being said, there are pros and cons to consider when deciding whether to downsize to a less expensive home.

Size Matters

If you have raised a family and find yourself as an empty-nester, so to speak, you probably have more home than you needed during the days of romping youngsters. Downsizing to a smaller home reduces the amount of maintenance, upkeep and cleaning responsibilities. Relieving yourself of those chores can free up time to relax.

On the con side, a smaller home means less space to for family visits. Although children and grandchildren may not spend months at a time, having the space for holiday stayovers can be important. A smart downsizing plan should consider balancing reduced labor with family time.

Costs Considerations

The surface numbers of downsizing often point to freeing up personal income. A lower or no mortgage payment equals more cash on hand. But selling and buying come with industry and relocation costs.

In all likelihood, your home sale and purchase will come with real estate agent fees, closing and moving costs among others. It’s important to factor all of these expenses into your future projections.

Although home transaction costs are generally static in the real estate industry, relocation can be a bit of a wild card. In-state moves may require only a set fee from a local moving outfit. But if you are headed to warmer or cooler climates, a big move can run upwards of 10 percent of your selling price. Get solid moving prices before tallying up your gains.

Ranked among the top pros to downsizing is the reduction in expenses. Retirement-age folks who have built up significant home equity may find themselves in a position to finally have no more mortgage. In this low-inventory seller’s market, the ability to cash out on high equity gives Baby Boomers and Gen Xers a chance at a zero-mortgage lifestyle.   

Many of our valued elders and 50-somethings are in the downsizing driver’s seat. Contact your trusted mortgage professional to discuss home equity options and other financing programs that can accomodate a retiree’s fixed income.

Myths About Buying A Vacation Home

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Myths About Buying A Vacation HomeAre you thinking about buying a vacation home? Maybe owning two homes is part of your retirement dream. Maybe you’d like to have a second home in your favorite holiday locale.

If you are thinking about taking this step, you might have talked to family and friends about it. Unfortunately, many people give well-intentioned, yet poor advice when it comes to buying a vacation home. Here are some myths — and the truth — about buying a second home straight from leading real estate experts.

You Can Buy A Vacation Home With No Money Down

You have probably seen advertisements about buying a vacation home with no money down. However, this is simply not the case and those advertisements are misleading. Unlike buying a first home, you will need a sizable down payment to purchase a second home.

The minimum amount down that you will need to buy a second home is 10 percent. In order to qualify for the lowest down payment, it would also have to be a single family residence and not an investment property.

So, if you plan to use it as a vacation rental, then you will need more money down – usually at least 20 percent due to the property being considered an investment property.

Renting Out Your Vacation Home Is Easy

Sites like VBRO, HomeAway and Airbnb have made renting out vacation rentals much easier. However, renting out a vacation or second home is not as simple as it seems. While renting out your vacation home is a great opportunity, you must run it like a business.

And remember, there are more expenses than just the mortgage payment and possibly HOA dues. Utility payments and amenities like internet and television services add to the monthly expenses and are desirable features to prospective renters.

Take some time with your trusted real estate professional and pencil out the total costs of maintenance. Then you will have a great idea of what it will take in rent to cover the costs.

You Don’t Have To Worry About Your Vacation Home When You Are Not There

Many people think that they can buy a vacation home and then forget about it when they are not using it. This is simply not the case. Vacation homes are often targets for thieves, so you’ll have to plan for a way to protect your home when you are not there.

Fortunately, the newer smart alarm systems make it easy to monitor a property from anywhere. Many smart home systems also include flood detection monitors so that you can be immediately notified if you have a water leak.

Owning a vacation home can be a very rewarding investment and a great addition to your long term financial plan. Once again, take your time and get your trusted real estate and mortgage financing professional involved to help you make the best decision possible.

 

Big Second Quarter GDP Numbers Impact Housing Market

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Big Second Quarter GDP Numbers Impact Housing MarketPositive economic growth numbers are always cause for celebration and the second quarter GDP just went vertical. After nearly four years of sub-par growth, the real GDP hit 4.1 percent in the second quarter.

While that economic news has everyday Americans excited that we may be entering a new age of prosperity, drawing a concrete link to the real estate market may be difficult. But by looking long and hard at this uptick and its potential impact on housing, you may get a better idea about buying, selling or standing pat on residential and commercial property.

GDP Report Points To Demand

Among the positive measures from the recent economic report, consumption enjoyed a positive increase. The first quarter numbers were disappointingly sluggish in this area at a modest 0.5 percent. The second quarter took off like a rocket, by comparison, at 2.25 percent.  

Although that figure shows an upwardly mobile economy, some experts are calling it discouraging given the extraordinary consumer confidence that has risen to record highs of more than 101.0 since November 2017. This opinion begs the question: why are economy gurus disappointed?

The first part of that answer has to do with the implementation of the Tax Cuts and Jobs Act that is putting more money in American paychecks and rolled back income tax liability. Many economists forecast that this personal wealth growth would turn into solid consumption. While working families have enjoyed a breather in terms of scratching from paycheck to paycheck, home purchases have not gone through the roof.

Home availability remains relatively low. With Millennials scooping up many of the starter-home listings and Baby Boomers downsizing, a significant housing shortfall exists. If you have ever heard the term “seller’s market,” this is it.

Inventory Shortage Means Buy Quickly

There are always naysayers that point to lower than expected consumption and claim the economy is weak. The facts in the GDP report clearly dispute any such ideas.

Business investment spiked to a powerful 11.5 percent and then 7.3 percent in the first two quarters. Fixed business investment is on fire based on deregulation, soaring profits and confidence.

That’s why real estate resources are saying that the only thing holding the market back is inventory. Home sale data is not keeping pace with other sectors of the economy because there simply is not enough inventory to keep up with demand. For first-time buyers, this means get prequalified and act swiftly if you find a dream home. It won’t stay on the market long.

Prospective homebuyers may be relieved to know that positive construction indicators are trending. New homes are expected to improve the inventory shortage heading into 2019. Still, demand is likely to stay ahead of inventory.

Be sure to contact your trusted mortgage professional to help you get your financing pre-approved so that you are ready to make an offer quickly.

4 Top Sustainable Home Trends

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4 Top Sustainable Home TrendsThe emergence of sustainable energy and products have solidified the go-green movement. Solar energy and electric cars are just the tip of the iceberg.

The impact of products on the environment has become a significant measure about their value. Those same principles are also being applied to homes. Smart homes and energy efficiency have a direct correlation to home values and listing prices. That’s why homeowners and home builders alike have an eye toward sustainable trends. These are some of the top-ranked home trends.

1: Durability Matters

After the catastrophic weather that damaged and destroyed homes in Florida and the Gulf states, “resiliency” has emerged as a key sustainability term. Contractors and home designers are including materials that stand up to extreme weather. These materials also consider toxicity levels, with the most non-toxic being among the more favorable. The storms will come, but how properties resist them and impact the environment afterwards are important sustainability trends.

2: Natural Light Keeps Trending

The use of sustainable solar energy has prompted many to go directly to the source. Large skylights and windows allow natural light to warm homes and reduce the need for electric lighting. Natural light also helps stave off Seasonal Affective Disorder during shorter winter days. Simply put, incorporating natural light resources is a trend that builds off of solar energy thinking.

3: Water Filtration Systems

It’s no secret that municipal water supplies have been compromised on occasion. This trend that started ramping up in 2017 continues to have legs as homeowners are securing water purity. In terms of sustainability, homeowners with water filtration systems have been utilizing them as a method to reduce the amount of bottled waters they purchase. Above and beyond the cost-saving benefits, the reduction in unsustainable plastics is helping to protect the environment.

4: Electric-Only Homes

The high carbon emissions from fossil fuels has motivated environmentally conscious Americans to turn to wind and solar. These days, improved energy storage from high-capacity lithium batteries has opened the door for homes to go all-electric. This appears to be an emerging trend that could pick up additional steam as energy storage technology moves forward. Electric-only homes could be a major step in allowing average homeowners to get off the grid. This trend is not only sustainable for the environment, it lessens the monthly impact on wallets.

Living in the technology era means that change can occur rapidly, and green-friendly homeowners may want to stay up to date on the latest sustainable home trends. They could improve home values going forward.

Whether you are in the market for an eco-friendly home or want to make improvements to your existing home, contact your trusted mortgage professional to explore all of your financing options.